Buenos Aires Real Estate

Garage Spaces – Prices are a Matter of Supply and Demand

Residents of Buenos Aires who own a motor vehicle are faced with a critical shortage of garage spaces.  Older buildings were constructed before there was a need for parking and the numbers of garage spaces in newer buildings, even those under construction, don’t come close to equalling the number of housing units built. 

In addition, many parking structures in Buenos Aires have been demolished to construct buildings on the land.  In the past four years, 700 garages have been eliminated to make room for new buildings. 

As the the number of car owners increases, the city experiences a proportional scarcity of garage spaces.  Upper middle class and wealthy neighborhoods, where the percentage of car owners is highest, suffer the greatest lack of garage spaces. 

The rules of supply and demand, however, are not the only factors that recently led to a ten to twenty percent increase in the monthly cost of renting a garage space.  Garage owners have passed on to consumers their increased costs in electricity and municpal taxes. 

Renting a garage space can now cost an average of $350 to $450 pesos per month, and in some areas as much as $800 pesos.  Prices vary according to the neighborhood and the number of garage structures in the area.  A garage space for a medium car can cost $300 pesos in Once and $600 to $800 pesos in Palermo. 

It’s easy to understad why apartments which include a garage space in the building are in the highest demand and are the most expensive. 

The demand for garage spaces makes the purchase of a parking garage an interesting investment option. In the first quarter of 2009, garage structures were selling between US$ 15,000 to US$ 20,000, but could cost up to US$ 35,000.  Several factors determine the selling price, mainly whether it is a covered garage structure or simply an uncovered parking lot. Other price variables include the location and the type of structure, whether it is ground level or a basement, and whether it has a ramp or elevator. 

Values start at US$ 9,000.  The most expensive are those in good locations with low maintenance costs and those which are at ground level or have a ramp.  The costs for transfering the property title is approximately US$ 800.

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Residential Lot prices in Buenos Aires
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